Discuss the cardinal utility theory.

Concerning cardinal utility theory, the concept of
utility is related to the field of
microeconomics, which studies economies at the individual
household level (as opposed to macroeconomics studying economies in society in both
public and private institutions). Utility refers to a consumer's satisfaction with
expenditures of income, including savings, investment, household expenditures and any
sort of discretionary expenditures. Utility theory holds
that benefit from each expenditure can be measured as a function of the utility of each
expenditure. For instance, buying food would have a high utility rating compared to
buying a discretionary manicure. Cardinal utility theory is
one means of rating expenditure utility by assigning a numerical value to each
expenditure. Numerical values are assigned by using cardinal
numbers, which are 1, 2, 3, 4, 5, etc., hence the name cardinal utility
theory. The difficulty microeconomists (and consumers) encounter is that consumers don't
often think of the utility value of expenditures in terms of numerical value. A
competing theory is ordinal utility theory in which
consumer preference is assigned in terms of first, second, third, fourth, fifth, etc,
without trying to evaluate actual utility value. The util
is the unit for measuring utility.